<PAGE>
As filed with the Securities and Exchange Commission on September 4, 1997
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 20, 1997
FRETTER, INC.
(Exact name of registrant as specified in its charter)
Michigan 0-14611 38-1557359
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
12501 Grand River
Brighton, Michigan 48116
(Address of principal executive offices) (Zip Code)
(810) 220-5000
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
- ---------------------
Fretter, Inc. (the "Company") is filing herewith the Monthly Operating
Reports of Debtors and Debtors in Possession for the Period Ended July 31,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on August 20, 1997 in connection with the
Company's ongoing proceeding under chapter 11 of the United States Bankruptcy
Code (11 U.S.C. Sections 101-1330), Case No. 96-15177.
Item 7. Exhibits.
- ------------------
(c) Exhibits.
--------
99.1 Monthly Operating Reports of Debtors and Debtors in Possession
for the Period Ended July 31, 1997 (1)
- -------------
(1) The Company agrees to furnish supplementally a copy of any omitted schedule
or similar attachment to the Commission upon its request.
-2-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned thereunto duly authorized.
FRETTER, INC.
By /s/ J. Michael McLean
--------------------------------------
J. Michael McLean
Controller
Date: September 4, 1997
-3-
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit Sequential
Number Document Description Page Number
- --------- ------------------------------------------- -----------
<S> <C> <C>
99.1 Monthly Operating Reports of Debtors and
Debtors in Possession for the Period Ended
July 31, 1997
===================================================================
</TABLE>
-4-
<PAGE>
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: 7-31-97
IN RE: :
CASE NO: 96-15177
Fretter, Inc. : Chapter 11
Judge Morgenstern-Clarren
:
- ------------------------------------
Debtor
:
As debtor in possession, I affirm:
1. That I have reviewed the financial statements attached hereto, consisting
of:
X Operating Statement (Form 2)
-----
X Balance Sheet (Form 3)
-----
X Summary of Operations (Form 4)
-----
X Monthly Cash Statements (Form 5)
-----
X Statement of Compensation (Form 6)
-----
----- -----------------------------------------
and that they have been prepared in accordance with normal and customary
accounting practices, and fairly and accurately reflect the debtor's financial
activity for the period stated:
2. That the insurance as described in Section 4 of the Operating Instructions
and Reporting Requirements for Chapter 11 Cases is in effect; and, (if not,
attach written explanation)
3. That all postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases are
current. (If not, attach written explanation)
4. No professional fees (attorney, accountant, etc.) have been paid without
specific court authorization. Explain on separate sheet if not true.
I hereby certify, under penalty of perjury, that the information provided herein
is true and correct to the best of my information and belief.
Dated: 8/19/97 /s/ J. Michael McLean
--------------------------
Debtor in Possession
Controller 810-220-5007
---------- ------------
Title Phone
<PAGE>
OPERATING STATEMENT (P&L)
-------------------------
(Accrual Basis)
---------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 07/31/97
<TABLE>
<CAPTION>
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue/Sales 0 532,663
Cost of Sales 0 505,226
--------- -----------
Gross Profit 0 27,437
========= ===========
EXPENSES:
--------
Officer Compensation 7,051 241,494
Salary Expenses other Employees 13,443 309,036
Court-Ordered Stay Bonus 162,921
Employee Benefits & Pensions
Payroll Taxes 2,307 55,889
Other Taxes 87,574
Rent and Lease Expense
Interest Expense 230,591 3,341,457
Insurance 55,549 477,600
Automobile and Truck Expense
Utilities (gas, electric, phone alarms) 2,928 153,907
Depreciation
Travel and Entertainment 1,298 10,259
Repairs and Maintenance 38,279 103,007
Advertising
Supplies, Office Expenses, etc. 22,980 122,581
Other: Specify Director & Trustee Fees 9,566 70,489
Other: Specify Misc. Fees 3,095
TOTAL EXPENSES: 383,992 5,139,309
--------- -----------
NET OPERATING PROFIT/(LOSS) (383,992) (5,111,872)
========= ===========
Add: Non-Operating Income:
Interest Income 1,657 5,810
Gain/Loss on Sale of Real Estate 342,981 3,800,228
Other Income 92,223 1,404,294
TOTAL 436,861 5,210,333
Less: Non-Operating Expenses:
Professional Fees 8,343 47,216
Other 37,615 530,175
--------- -----------
NET INCOME / (LOSS) 6,911 (478,930)
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 07/31/97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 566,623 624,074 89,252
Inventory: 791,999
Accounts Receivable: ** 34,773,637 34,777,085 35,930,804
Insider Receivables 7,414,781 7,414,781 7,424,547
Land and Buildings: 35,885,570 36,143,577 49,365,801
Furniture, Fixtures & Equip: 418,000
Accumulated Depreciation: (8,042,355) (8,202,587) (10,623,681)
Other: Prepaids & misc. 473,852 530,913 807,689
Other: Utility deposits 50,051 51,372
----------- ----------- -----------
TOTAL ASSETS: 71,122,159 71,339,215 84,204,411
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 255,154 362,737
Wages and Salaries: 11,891 19,746
Taxes Payable: 200,488 130,494
Other: 663,618 583,178 1,390
----------- ----------- -----------
TOTAL Postpetition Liab. 1,151,151 1,096,155 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 19,869,372 20,155,160 29,002,401
All other Secured Liab. 4,383,920 4,399,393 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 24,253,292 24,554,553 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 736,440 391,184 1,132,770
Unsecured Liabilities 6,611,527 6,765,082 6,849,397
Other: Accrued Liabilities 4,994,419 5,163,857 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 12,342,386 12,320,123 13,432,084
=========== =========== ===========
Redeemable Preferred Stock 48,265,040 48,265,040 48,265,040
----------- ----------- -----------
Equity:
Owners Capital: 1,692,451 1,692,451 1,692,451
Retained Earnings-Pre Pet. (16,103,231) (16,103,266) (15,560,830)
Retained Earnings-Post Pet. (478,930) (485,841) 0
----------- ----------- -----------
TOTAL Equity: (14,889,710) (14,896,656) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 71,122,159 71,339,215 84,204,411
========== =========== ===========
</TABLE>
________________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 07/31/97
Debtor: Fretter, Inc. Case No: 96-15177
Schedule of Postpetition Taxes Payable
--------------------------------------
<TABLE>
<CAPTION>
Beginning Accrued/ Payments/ Ending
Balance Withheld Deposits Balance
---------- -------- --------- --------
<S> <C> <C> <C> <C>
Income Taxes Withheld:
Federal: 0 5,145 5,145 0
State: 0 1,195 1,195 0
Local:
FICA Withheld: 0 2,371 2,371 0
Employers FICA: 0 2,371 2,371 0
Unemployment Tax:
Federal: 126 39 127 38
State: 1,361 (332) 855 174
Sales, Use & Excise Taxes: 301 301
Property Taxes: 128,706 71,269 199,975
Workers' Compensation
Other:
------- ------ ------- -------
TOTALS: 130,494 82,058 12,064 200,488
======= ====== ======= =======
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Age in Days 0-30 30-60 Over 60
PostPetition
Accounts Payable ______ ______ ______
Accounts Receivable ______ ______ ______
</TABLE>
For all postpetition accounts payable over 30 days old, please attach a sheet
listing each such account, to whom the account is owed, the date the account was
opened, and the reason for non-payment of the account.
Describe events or factors occurring during this reporting period materially
affecting operations and formulation of a Plan of Reorganization.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
<PAGE>
MONTHLY CASH STATEMENT
Debtor: Fretter, Inc. Statement for the period:
Case #: 96-15177 From: 7-1-97 To: 7-31-97
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Payroll Tax Cash Coll. B.T.
Acct. Acct. Acct. Acct. B.T. Direct(1)
------- ------- ----- --------- ---------
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 116,326.11 6,186.89 1,286.66 0.00 0.00
------------ --------- --------- --------- ----------
B. Receipts. Attach
separate schedule: 537,424.10 27,610.26 16,066.42 0.00 15,473.97
------------ --------- --------- --------- ----------
C. Balance Available
(A + B): 653,750.21 33,797.15 17,353.08 0.00 15,473.97
------------ --------- --------- --------- ----------
D. Less Disbursements
Attach separate
schedule 550,573.07 22,512.75 12,097.63 0.00 15,473.97
------------ --------- --------- --------- ----------
E. ENDING BALANCE
(C-D) 103,177.14 11,284.40 5,255.45 0.00 0.00
============ ========= ========= ========= ==========
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38120-0
Payroll Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38024-4
Tax Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38128-3
</TABLE>
Other monies on hand (specify type and location) (i.e., CD's petty cash):
BT Collateral Acct. - Old Kent Bank, Acct. No 229377
BT Direct - BT cash collateral is forwarded directly to B.T.
Date:
-----------------------
Debtor in Possession
<PAGE>
MONTHLY CASH STATEMENT
----------------------
Debtor: Fretter, Inc. Statement for the period:
-------------
Case No.: 96-15177 From: 7-1-97 To: 7-31-97
------------- ------------- ------------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Tax
Savings Savings
Acct. Acct.
---------- ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 400,219.18 100,054.79
---------- ---------- ---- ---- ----
B. Receipts. Attach Separate Schedule: 1,321.26 336.05
---------- ---------- ---- ---- ----
C. Balance Available (A+B): 401,540.44 100,390.84 0.00 0.00 0.00
---------- ---------- ---- ---- ----
D. Less Disbursements Attach separate
schedule: 50,012.50 5,012.50
---------- ---------- ---- ---- ----
E. Ending Balance (C-D): 351,527.94 95,378.34 0.00 0.00 0.00
---------- ---------- ---- ---- ----
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Savings Account
1. Depository Name & Location Michigan National Bank, Brighton, MI
----------------------------------------
2. Account Number 4707-38293-5
----------------------------------------
Tax Savings Account
1. Depository Name & Location Michigan National Bank, Brighton, MI
----------------------------------------
2. Account Number 4707-38357-8
----------------------------------------
----------------------------------------
----------------------------------------
Other monies on hand (specify type and location)(i.e., CD's petty cash):
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Date:
-------------------- ----------------------------------------
Debtor in Possession
FORM 5
-ix-
<PAGE>
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder,
officer, director, manager, insider, or owner that is employed by the debtor in
possession. Attach additional pages if necessary.
Name: J. Michael McLean Capacity: Principal
------
X Officer
------
Director
------
Insider
------
Detailed Description of Duties: As Controller, directs accounting, payroll,
benefit plans and tax filings as well as assists in cash flow planning
Current Compensation Paid:
Weekly or Monthly
7,051
------ ------
Current Benefits Received:
Weekly or Monthly
1,693
Vacation Pay ------ ------
423
Holiday Pay ------ ------
Retirement ------ ------
Company Vehicle ------ ------
Entertainment ------ ------
Travel ------ ------
Other Benefits ------ ------
CURRENT TOTAL:
Weekly or Monthly
9,167
------ ------
/s/ J. Michael McLean
Dated: 8/19/97 ------------------------------------
-------------------- Principal, Officer, Director, Insider
<PAGE>
LIST OF OMITTED SCHEDULES
1. Schedule of Michigan National Bank July 1997 Cash Receipts (Account Number
4707-38120-0)
2. Schedule of Michigan National Bank July 1997 Cash Disbursements (Account
Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period July 1, 1997
to July 31, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period July 1, 1997
to July 31, 1997 (Account Number 4707-38024-4)
5. Schedule of Michigan National Bank Payroll Account July 1997 Cash Receipts
and Disbursements (Account Number 4707-38024-4)
6. Schedules of Michigan National Bank Tax Account July 1997 Cash Receipts
and Disbursements (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period July 1, 1997
to July 31, 1997 (Account Number 4707-38128-3)
8. Schedules of Old Kent Cash Receipts and Disbursements (Account Number
229377)
9. Old Kent Bank Statement of Account for the Period July 1, 1997 through
July 31, 1997 (Account Number 229377)
10. Schedule of Bankers Trust Cash Receipts
